FINALLY SOMEONE REPORTS ON HOW THEY DID!

Everyone has an opinion when the calendar changes from year to year, but rarely are they reporting back as to how they did. Well, the food branding experts at Foodmix Marketing Communications believe in accountability, transparency and all those new era marketing buzz terms. So, let’s peel back the onion layers and see if we stunk or shone in 2019 and put our beverage marketing and food marketing expertise to the test!

2019 PREDICTION: CLEAR LABELS

Clean labels will continue to be a focus in food and drink branding, but that is just the beginning; consumers want to learn about the journey of ingredients, health benefits and brand story – all from the label.

How’d we do: Oh, those discriminating millennials and their priority on making “informed purchasing decisions.” According to a recent Whole Foods study, most millennials want to know where their food comes from and how it’s sourced. As millennials’ spending power grew in 2019, so too did the importance of labels that are not just clean, but informative. Earlier this year, in response to younger consumers’ desire for transparent, informative labels, KIND’s food marketing agency launched a pop-up store that allowed visitors to take an augmented-reality “X-ray” of popular snacks to see how much – and what kinds – of sugar were inside, in contrast to what the labels disclosed. Grade: A-

2019 PREDICTION: PLANT-BASED FOODS WITHOUT THE YUCK

Plant-based will continue to be all the rage; we expect to see a slew of new products, particularly in the snacking and breakfast categories. But players will struggle with delivering on the flavor/taste component of the brand offering. A lot of new items will sound better than they taste.

How’d we do: Up to 2019 the plant-based protein market had been dominated by two young companies: Impossible Foods and Beyond Meat. That’s still largely true, but 2019 saw a slew of established food companies launching or announcing their own products. Kroger introduced plant-based products from burger patties to Bolognese sauce to sour cream. Tyson, Smithfield, Perdue and Hormel rolled out meat alternatives, filling supermarket shelves with plant-based burgers, meatballs and chicken nuggets. Kellogg announced plans to launch a line of breakfast meat substitutes called Incogmeato. And Nestlé said it will start selling plant-based versions of bacon and cheddar cheese to foodservice clients next year. I’d like a bacon cheeseburger, please; but hold the bacon, cheese and burger?

With a glut of new products swelling “meat” cases, it’s too soon to tell who the winners and losers will be – but there are sure to be both. Repeat purchase data and consumer feedback are still needed to determine if brands are delivering on taste and if consumers will stick with a favorite. The brand whose food marketing agency launches a plant-based version of the “Pepsi Taste Challenge,” or wins it, could get a lot of attention! Grade: B

2019 PREDICTION: “I DON’T TRUST FACEBOOK”

“Fake news” and privacy attacks have contributed to the public’s—and food and beverage brand marketers’— wariness of Facebook. Sure, grandma needs to see those pics, so we predict that Facebook will shift to serve older generations, while other more visual and flexible social media platforms that enable storytelling, will be more fully utilized for building relationships between food and foodies.

How’d we do: The latest research confirmed that Grandma and her friends are in fact the fastest-growing group of Facebook users. And we’re looking at you, baby boomers. Forty-three percent of US boomers were on Facebook in 2012; by 2019, 60% had accounts. While the numbers of millennials and Gen Xers on the platform kept relatively steady, surveys showed Gen Zers shunning Facebook in favor of more visual platforms.

And speaking of trust, Mark Zuckerberg may be becoming the second-least-trusted guy in America, next to that pitchman for Sprint who used to tout Verizon’s superiority. In July 2019, the Federal Trade Commission fined Facebook $5 billion for violating consumers’ privacy. Zuckerberg adamantly refuses to prohibit untruthful political advertising, while rival Twitter CEO Jack Dorsey has pulled all political ads. Grade: A+

2019 PREDICTION: “I CAN’T AFFORD TO BE HEALTHY”

The paradigm of the “better for you, the more it will cost you” will begin to shift. With all the investment money flooding the food business and food marketing communications, challenger brands, loved for their healthy attributes, will scale up and be more approachable for the masses.

How’d we do: We missed the boat here. Challenger brands continued to scale up in 2019, but cost efficiencies and a desire to expand their markets did not appear to lead to lower prices at the shelf. While some brand owners were quoted in the press talking about the need to make healthy eating more accessible to those buying food on a budget, foods that deliver on key attributes identified by challenger brands – nutrition, clean label and taste – for the most part remained priced at a premium in the market.

What we did see this year were private label brands stepping up their effort to offer products with healthy attributes at competitive price points. Trader Joe’s, Kroger’s Simple Truth and Whole Foods Market 365 are getting consumers’ credit for having a wide range of affordable, high-quality health and wellness products that are giving challenger brands a run for their money. Grade: D

PREDICTION: “IT’S A FOOD WORLD, AND I JUST HAPPEN TO LIVE IN IT”

The hidden middle aisle of your grocery store is no longer the domain of global foods. Foodies see globally inspired flavors and foods as a way to explore the world when life keeps them off the road.

How’d we do: First of all, it’s not just foodies anymore. We continued to see the overarching globalization of flavor upend the traditional food industry. A 2019 survey revealed that most US consumers are demanding more variety in flavors from their snacks and other center-store food items. Two-thirds indulge on globally inspired foods and flavors at least once a month, while three-fourths want to try flavors from places and cultures that are not their own. And food companies continued investing resources in identifying and delivering global flavors. The food branding experts at Frito-Lay announced use of AI technology to identify micro-markets for exotic flavors and products they might otherwise have missed. Grade: A

PREDICTION: MEDICINE MAN BECOMES MEDICINE MOM

So this trend has been around for a while (let’s say thousands of years), but on the Mom (and Grandma) scene, all types of natural foods are becoming commonplace answers to everyday ailments. Elderberry syrup for colds and flus, essential oils to cure everything from a cold to cancer, and even daily apple cider vinegar shots to aid in digestion. Food as medicine is sure to be amplified in 2019!

How’d we do: While we think we were right on target, this trend didn’t get quite the consumer attention we thought it would generate this year. Evidence of the trend was on display at The Natural Products Expo in March, where countless companies bridging the gap between food and nutrition showed their new elixirs. Supplements, functional foods, extracts and ancient cures were all the buzz.

As this trend grew in 2019, so too did the scientific community’s attempt to get ahead of consumer perceptions. Results of one study suggested that a Mediterranean-style diet may benefit depression sufferers. Scientists weighed in on the purported benefits of apple cider vinegar as a remedy for schizophrenia. And a study from Tufts University suggested that eating an apple a day really does keep the doctor away. The findings supported the concept that food is medicine, and identified the top three healthiest fruits as grapefruit, pineapple and avocado. Yes, apparently avocado is a fruit. Our food marketing experts were also surprised. And a little dismayed, quite honestly, given the years of expensive (thanks, Mom and Dad) therapy it took us to finally accept tomatoes as a fruit. Grade: B

2019 PREDICTION: “MY MEAL KIT SERVICE FEELS LIKE SHACKLES”

It comes every week, and I must prepare it and store it and re-warm it and throw a bunch away. Meal kits, shipped to consumers’ doors directly every week, are proving to be more of a burden than a convenience. But the idea of “elevated convenience” is here to stay. Look for technology to help move this trend along in 2019. Meal Kits (a few will survive via retail partnerships), meal components, delivery service, and yes, even robotics will make it easier to put dinner on the table – or in a cup holder, etc.

How’d we do: Blue Apron, the pioneer of meal kit delivery, continued to see jarring declines in total customers and total orders from 2018, while its market value virtually evaporated from when it was still privately held. Customer churn has remained a major issue with Blue Apron (and with its many me-too competitors like Hello Fresh, Plated and Freshly), despite the company’s best effort to invest in new products and retain customers. Consumers continued trying meal kits… and then stopped using them. Research has showed price as the major barrier to continued usage, as well as having to make a long-term commitment.

This year saw the rise of another concern about meal kits: the environmental impact of excessive packaging. The scientific verdict is still out on whether meal kits have larger carbon footprints vs. conventional food delivery and preparation methods, but popular sentiment that meal kits are wasteful seems to be growing.

Meanwhile, robotic food delivery continued to creep – err, to roll – closer to being mainstream. Starship Technologies announced that it had raised $40 million to expand its food-delivery robots from two college campuses to more than 100 by 2021. Danger, Will Robinson, I’m outside your dorm room with crappy pizza! Grade: A+

2019 PREDICTION: BIG BRANDS BITE BACK

The reports of the death of big brands have been highly exaggerated. Market share declines have gotten the attention of legacy brands that still have considerable equity and leverage in the marketplace. Reformulations of existing items will continue, as will the engagement in start-up incubators looking for that next big thing.

How’d we do: Cleaner labels, new line extensions and product launches were among the methods that legacy food manufacturers and their food branding agencies used in 2019 to stay relevant. Kraft Heinz launched Lunchables Brunchables. PepsiCo introduced a slew of new line extensions from a Wild Cherry version of Pepsi Zero Sugar to Pure Leaf Cold Brew iced tea to a dairy-based shake line under the Gatorade brand. General Mills struck back against newer snack bars like KIND with new offerings, such as a wafer-style Nature Valley bar and a higher-protein Fiber One bar. Even boomers’ retro-favorite Pop-Tarts got a re-do; Kellogg rolled out Pop-Tarts Pretzel, and began pushing the long-time breakfast staple into new dayparts and occasions. Although we question the world’s need for the new Baby Shark cereal from Kellogg’s, seems old habits die hard. Start-up incubation by legacy brands showed few signs of slowing down. The Garage, an incubator run by Hershey, began rolling out a line of chocolate truffles with fewer calories, less fat and less sugar. Yum! Grade: B+

2019 PREDICTION: “MY WIFE SAYS GROWN MEN DON’T GET TUMMY ACHES”

Nomenclature aside, gut health is being better understood and will be a big focus in 2019. Prebiotics will gain some attention, but probiotics will continue to be featured as well. As Americans understand the role gut happiness plays in overall health, wellness and quality of life, look for fewer tummy aches in 2019!

How’d we do: Research on prebiotic supplements is still in its early stages, and by the end of 2019 many of the benefits remained largely theoretical. For those reasons, growth in supplements was slow, and some online nutritionists noted that because potentially helpful prebiotics can be found in fruits and vegetables, it’s best to consume prebiotics naturally whenever possible.

Meanwhile, consumers’ use of probiotics continued to grow, with a study showing one in four US consumers taking the supplement to support cognitive health. And 2019 saw another promising – and surprising – food that makes tummies feel better. UK researchers found that dark chocolate with 70% cocoa can promote friendly bacteria and reduce gut inflammation. Grade: C

2019 PREDICTION: DAVE’S NOT HERE (BUT HE’S ON HIS WAY)

Okay references to Cheech & Chong Movies of the ‘70s aside – cannabis is a cultural wave that shows no signs of slowing down. Aside from munchies, what are the implications for food? Well, as strains/components of weed emerge – like CBD Oil – which is not psychoactive but is known for its pain-relieving properties, expect more of cannabis-related ingredients popping up in food and beverages. Federal regulations will need to change to maximize the potential, but many regional food brands are already utilizing components – and the big beverage companies are well into their research and development processes.

How’d we do: Dave got a lot closer to being here in 2019. The year was awash in news of food companies and their food marketing agencies announcing their entry into cannabis. Arizona Iced Tea entered marijuana edibles through a licensing deal with Denver-based (where else?) weed producer Dixie Brands. Molson Coors announced plans to launch CBD-infused water in Canada. This year saw the opening of the first-ever US-based cannabis consumption-friendly restaurant, Lowell Farms Café in West Hollywood, CA (where else?). And as CBD got added to coffee, RTD beverages, gum, chocolate and just about everything else, functional ingredient sales growth of CBD through US retailers more than tripled YOY. Hey, you can even get CBD at your gas station convenience store.

Though now legal under federal law, CBD is still subject to regulation when sold with a claim of therapeutic benefit. And federal policy still maintains that adding CBD oil to food products is the same as adding a prescription drug — in other words, forbidden without a doctor’s prescription. Grade: A+

That’s what we thought and what we learned this year. As our beverage and food marketing experts prepare for our 2020 predictions – and yes, subsequent scorecard – we would love to hear from you! What do you see as a big trend in 2020? If we pick yours, we will credit you – and maybe make you a bit more famous!

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Foodmix Marketing Communications is a full-service food branding agency that has been developing and executing integrated B2B food marketing, B2C food marketing and increasingly B2B2C food advertising and marketing campaigns for some of the biggest and best names in food for more than 30 years.

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Brand Love Supercharges Consumer Behaviors

What Foodmix Feels this Means For The Future

While “Brand Likers” have strong relationships with their favorite foods, “Brand Lovers” react to their beloved brands in ways that align with a company’s most critical KPIs. Our research shows that Brand Lovers are the most loyal buyers and truest brand advocates anywhere.

What Foodmix feels this means for the future.

Adding claims to your brand message probably won’t elevate your brand to the status of “loved.” To set you on the right course toward Brand Love means starting with the target consumer and understanding their lives and passions. And when we say target consumer, we do not mean the broad groupings based upon demographic profiling. We mean identifying the thought leaders in these large traditional groupings – “the cool kids everyone looks up to” or emulates. When you understand what drives these influentials, chances are your path to Brand Love will become all the more clear.

What Foodmix feels this means for the future.

Personality matters. The best way to be loved is to be interesting, relevant and authentic. This can only be done by better understanding one’s target – not just their demographics. Only through a deep immersion can we understand what drives them and what will get their attention. Marketers tend to broadly define a target in the hopes of appealing to a mass audience so as to generate substantial business. But you can’t be all things to all people. Focus on the thought leaders and influencers – make your target as small as you can. Then draw them in with a story that creates a powerful, personal bond. Once you connect with an influential few, the masses will follow.

What Foodmix feels this means for the future.

It’s easy to chase headlines, but marketers need to be cautious, especially in today’s food culture. For every trend there is a counter-trend. How many gluten-free products will ultimately survive? What happens when “non-GMO” simply becomes a point of entry? Grabbing a trend and staking your whole reason for being upon it can have significant risks when the trend proves to be a fad or when the market is saturated. Truths last and resonate. Find your “True North” and forge a path that leads your consumers to an unremitting love for your brand.

What Foodmix feels this means for the future.

Creating brand bonds can take time. But that’s not to say your brand needs to spend decades on the shelves. Creating great experiences is an integral way to attain Brand Love. Your brand needn’t “own” the experience, simply enhance it. If your brand is established, go retro. Not only is retro the rage, it could spark a trigger of happy times. Established brands can also leverage existing equity to create successful line extensions. Newer brands can benefit from this “experience” dynamic as well. How can your product help recreate, or refresh, life experiences consumers hold dear? Creating Brand Love is about fitting your brand into consumers’ lives, not wedging your story into their mind. Be true, and be relevant.

What Foodmix feels this means for the future.

Times have changed. Well-established brands need to evolve along with an ever-changing food culture. For them, Foodmix continues to utilize our unique B2B2C capabilities to help them own both the retail customer and the ultimate consumer. But the path today is different – the buzz now is all about shifting consumer expectations and behavior – something we have been tracking and acting upon for decades. Who better to help food companies profi t during the Food Renaissance than the team who helped them master the shift from “at-home” to “away-from-home” food spending over the last 30 years? Welcome to the Food Renaissance – let’s get together and create some Brand Love.

Nadine Baarstad
VP, Client Development

“I believe in two food groups: Bread pudding and ‘other ‘.”

Every company needs a brand advocate, and who better to serve in that role than Nadine? She’s our client development guru who knows how to move our clients from “brand like” to “Brand Love.” Whether she’s attending industry conferences, serving on marketing boards, or scouring media outlets for news, Nadine can spot someone who could use a little Brand Love in their lives. She understands what clients need because she has worked on all sides of the business, from media planning/buying to account direction to TV production. She has won accolades and awards for her work with respected brands including ConAgra, Maybelline, Dial Soap, Humana and more.

“I now pronounce you man and Wasabi Peas.”

Sure, there’s Brand Love. But what about “Brand Marriage?” If such existed, Tim would have most likely presided over many a ceremony. In fact, through the years, Tim has helped unite people and brands as lifelong partners to have and to hold, to honor and cherish, from first purchase forth. Tim is a strategy-first creative who helps craft brand stories that connect. In fact, Tim has spent over 20 years connecting customers and consumers to various food and beverage brands through integrated marketing efforts and award-winning advertising for agencies like Lois/EJL, Campbell-Mithun, Bozell and more.

George Kusch
Creative Director

“Whispering sweet nothings to my pepperoni pizza puffs.”

Love may be blind but “Brand Love” is anything but. At the risk of making Brand Love seem fickle, creating Brand Love is very much dependent upon all the senses. What one sees. What one feels. And if there’s one guy who can make a brand simply irresistible, that guy is George. George masterfully highlights a brand’s sexiest features while crafting a brand story that truly connects. And truly moves customers and consumers to action. In fact, George has spent over 25 years gussying up brands with award-winning creative for agencies like Foote Cone & Belding, RSCG Tatham, Campbell-Mithun and more.

Peter Baughman
Vice President, Communications

“I will fight anyone who disagrees that Gummi Bears are the world’s finest food.”

When it comes to love, we’ve all heard how important communication is. When it comes to Brand Love, that need for clear and powerful communiqués is extremely magnified. Fortunately, there’s Peter. Peter is a masterful marketing wooer, making sure the right message gets to the right people in the most effective and proficient manner. With over 15 years of agency experience including long stints at OMD and Starcom, Peter has perfected his skills regarding the oversight, execution and measurement of all communications (external and internal) via paid, owned, earned and shared platforms.

Steve Megel
Chief Operating Officer

“loving a brand at the age of 6 and sharing it with your grandkids at 60.”

Every Lothario needs a wingman. When it comes to the team of brand love creators here at Foodmix, Steve is that guy. He’s a behind-the-scenes bigwig, overseeing the financial and day-to-day operations of this finely tuned agency. And he’s available to share his financial acumen to help grow clients’ businesses as well. Combine that with his extensive IT and Internet management skills and it’s no wonder Steve has been considered an invaluable asset, ever since his days as a CFO at a communications behemoth and as an officer of major agencies and holding companies.

Sara Hagen
President

“forget the life preserver, throw me a wheel of P’tit Basque.”

How does one get to “Brand Love” from “Brand Like” or “Brand We’re Just Friends”? That’s where Sara comes in. She is Brand Love’s true muse – overseer of the entire Brand Love-building experience. Sara is tirelessly invested and committed to each of Foodmix’s clients – whether she’s crafting a marketing communications plan or collaborating on a client’s future goals and ways to exceed them. Beginning with her years at Nakano Foods, followed by leading the charge for Rich Products at O’Connell, Norton & Partners, up until her current position here at Foodmix, Sara has earned every bit of her esteemed reputation in the food and food marketing industries.

Dan O’Connell
Founder/CEO

“I want to bathe in my favorite barbecue.”

When it comes to creating Brand Love, there is no matchmaker quite like Dan. He wields strategic know-how like Cupid’s bow and hones sharp insights into pinpoint-precise arrows that target audience’s collective derriere. In other words, Dan knows what makes the evolving food culture tick. He’s refined his craft for over three decades, both as client and agency guy. In 1988, Dan founded Stricevic & O’Connell – a small marketing firm that quickly blossomed into the Food Marketing Division of Bozell Worldwide. Today, along with overseeing the strategic and creative direction on all major Foodmix accounts, Dan speaks nationally on marketing issues and is involved in several food industry associations.

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